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Falling Tesla Stocks
While Tesla has lost about half of its market value after his Twitter bid in April, Elon Musk drops to the second spot on Forbes’ real-time billionaires’ list. The Tesla, SpaceX, and Twitter chief loses to Bernard Arnault, Chairman, and CEO of French luxury brand LVMH, whose net worth is $186.2 billion, against Mr Musk’s $185.0 billion. There is a saving grace for Mr Musk as he has retained the world’s richest man title since September 2021 and still does, according to the Bloomberg billionaire index, which employs a different approach than Forbes.
Twitter Issues
However, while dropping to the second spot might not be a concern for Elon Musk; the shaking trust of Tesla’s shareholders and partly balancing $13 billion high-interest debt with new margin loans backed by Tesla stock (according to Bloomberg), are two of the most significant issues the billionaire is facing right now. Also, these are not the only challenges Elon Musk has to deal with at once. He purchased Twitter when the company registered a yearly net loss of $221m and fired about 3,700 Twitter employees so far with dozens of them resigning in the process. Apart from various lawsuits over the layoffs, Musk has to also deal with millions of recalls, declining demand in China, and disarray at its short-staffed German Gigafactory. Elon Musk employed 50 volunteer employees to overhaul Twitter and desired to sleep at Twitter’s San Francisco headquarters until the company got on track.
Apprehensive Investors
Seeing the growing concern over Elon Musk and Twitter, investors are apprehensive and concerned. Tesla investor, Trevor Goodman, told Bloomberg he was against Elon Musk’s Twitter purchase because he knew it would be a big distraction in fulfilling his goals for Tesla. Many retail investors have also voiced their apprehensions, as they believe Elon Musk has abandoned them in favour of his new venture.
Let us see how Elon Musk handles the pressure and alleviates the increasing concerns of shareholders and investors in the future.
